29 April 2009
In the headiness
of the bull market, institutional investors generally took on more risk and
enjoyed fewer rewards than alternatives managers. But the crisis has provided
an opportunity for both counterparties to redefine the balance in the LP/GP
relationship, in which institutions are entitled to demand a true alignment of
interests on returns, lock-ups and fees. Simon Mumme examines new research by US consultancy Cambridge
Associates.
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